Arizton Advisory & Intelligence shared how COVID-19 has impacted global data center cooling in its recent market report. The data center cooling market is expected to grow at a compound annual growth rate of more than 4 percent for the next five years.

In 2020, COVID-19 boosted data center demand, resulting in minor supply chain disruption during the first and second quarters with quick recovery in the last two quarters. Last year, data center cooling systems had more than 14 percent Y-O-Y investment compared to 2019 due to the outbreak of the COVID-19 pandemic. The deployment of artificial intelligence and machine learning workloads increases the demand for liquid immersion and direct-to-chip solutions.

Most data centers are mostly restricted to urban locations and prominent sites such as Texas, New York, Virginia, London, Stockholm, Frankfurt, Paris, Dubai, Mumbai, Osaka, Sydney, Melbourne and Auckland. In recent years, these locations have attracted considerable investments, and more data centers are planned for 2021.

Because of the increasing usage of connected devices across businesses and consumers, the concept of edge computing is gaining traction in the market. This has led to huge demand for high bandwidth Internet in many rural areas, thereby driving the need for data centers to process information on par with major cities. Edge data centers will create a decentralized model of data centers, where multiple edge data centers will be connected to a centralized hyperscale facility.